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Latest Cases & Developments
Date:
Schultz v. Emory University (N.D. Ga. May 5, 2025)
Order and Opinion Denying Plaintiff’s Motion for a Class Certification. Plaintiff, father of a former Emory University student during Spring 2020, on behalf of himself and a proposed class brought a breach of contract claim and a money-had-and-received claim following the closure of the University’s campuses due to the COVID-19 pandemic in March 2020. In September 2023, the Eleventh Circuit granted permission for an interlocutory appeal of the partial grant of plaintiff’s Motion to Certify the Class, which it subsequently vacated and remanded, assigning two errors: “(1) it was an error to find that the Rule 23(b)(3) predominance inquiry ‘requires that damages . . . be measurable on a class wide basis through use of a common methodology;’ and (2) it was an error to place the burden on [the University] rather than [plaintiff] to establish whether damages are capable of class wide rather than individual determination.” On remand, the University requested that the Court reconsider whether plaintiff had standing to pursue his claims, citing a new wave of case law handed down since the Court first considered the issue. The Court found that many courts have more recently held that parents seeking relief on behalf of their adult children do not have standing in suits against colleges and universities that closed their campuses during COVID-19, citing a similar case in the Second Circuit where a parent was found to lack standing to pursue a breach of implied contract claim or a money-had-and-received claim. Reasoning that “federal courts have concluded near unanimously that parents of adult students lack standing to bring similar COVID-19-related lawsuits against universities, even when they paid tuition and fees,” the court concluded that plaintiff failed to allege an injury particular to him as he did not and could not claim that he was denied access to the University’s in-person classes, facilities, and services; plaintiff’s daughter is the only one who suffered the alleged injury-in-fact, and that as a result she is the only one who could have entered into a contract with the University. Finally, the Court found that plaintiff failed to meet his burden to identify a viable class wide damages model and his proposed class was unmanageable as he did not know how many members his putative class contained, and his proposal relied on a UserID field in the University’’ OPUS software that does not reliably identify payors; made no attempt to explain how he will identify payors who paid through third-party services or wire transfers; would allow payors to self-identify; and would require individualized forensic review of payment records.
Topics:
Campus Police, Safety, & Crisis Management | CoronavirusDate:
U.S. Department of Education Letter to Harvard University Ending New Grants (May 5, 2025)
U.S. Department of Education (the Department) sent a letter to Harvard University informing the University that the federal government will no longer provide it with grants. The letter alleges that the University is “engaging in a systemic pattern of violating federal law” and criticizes the University’s management, course listings, and faculty. It further alleges that the University has failed to abide by the Supreme Court’s decision in Students for Fair Admissions v. Harvard (2023). The letter concludes by encouraging the University to draw from its endowment and alumni to compensate for the loss in federal grants. Litigation is ongoing in the related case, Harvard v. U.S. Dep’t of Health and Human Services (D. Mass. Apr. 21, 2025), where amicus briefs are due June 9, 2025, and oral arguments are set to take place on July 21, 2025.
Topics:
Contracts | Grants, Contracts, & Sponsored ResearchDate:
U.S. Department of Education DCL on Title IV Obligations to Help Struggling Borrowers (May 5, 2025)
U.S. Department of Education (the Department) issued a Dear Colleague Letter (DCL) to institutions of higher education reminding them of their shared responsibility under Title IV to support student loan borrowers. In the DCL, the Department urges all institutions of higher education that receive federal funding assistance to reach out to all former students to remind them of their obligation to repay any federal student loan that is not in deferment or forbearance and urges that they do so before June 30, 2025. The Department also notes that it maintains data on the repayment status of federal student loan borrowers and provides information in the College Scorecard about the status of each institution’s borrowers after they enter repayment. The Department plans to use the data to calculate rates of nonrepayment by institution and will publish the information on the Federal Aid Data Center later this month. Finally, the DCL concludes that under the Higher Education Act (HEA), institutions are required to keep their cohort default rates (CDR) low or they risk losing eligibility for federal student assistance, including Pell Grants and federal student loans.
Topics:
Financial Aid, Scholarships, & Student Loans | StudentsDate:
National Science Foundation Policy Notice: Implementation of Standard 15% Indirect Cost Rate (May 2, 2025)
The National Science Foundation (NSF) published a Policy Notice on the adoption of a standard 15% Indirect Cost Rate (ICR) for NSF Grants and Cooperative Agreements awarded to institutions of higher education. The ICR applies to all NSF financial assistance awards and subawards and is intended to streamline funding practices, increase transparency, and ensure that resources are applied to direct scientific engineering research activities. The ICR is effective beginning May 5, 2025, applies to new awards, and does not apply retroactively to existing awards. The policy notice states that the new policy allows NSF and its awardees to focus more on scientific progress and less on administrative overhead by aligning with common federal benchmarks and improving government efficiency by eliminating the need for individualized indirect cost negotiations.
Topics:
Contracts | Grants, Contracts, & Sponsored ResearchDate:
Doe v. Bondi (N.D. Ga. May 2, 2025)
Order and Opinion Granting Plaintiffs’ Motion for Preliminary Injunction. Following the Court granting plaintiffs’ amended motion for a Temporary Restraining Order (TRO), it directed defendants to reinstate plaintiffs’ student status and SEVIS authorization, retroactive to March 31, 2025, and considered whether to convert the TRO into a preliminary injunction. To effectuate the latter, plaintiffs must establish that they have a: (1) substantial likelihood of success on the merits; (2) a substantial threat of irreparable injury if the injunction is not granted; (3) that the threatened injury to the movant outweighs the damage to the opposing party; and (4) that granting the injunction would not be adverse to the public interest. Based upon the allegations of the Amended Complaint and the specific facts in plaintiffs’ 133 declarations, the Court found that plaintiffs demonstrated a substantial likelihood of success on the merits of their claim and that defendants’ termination of the SEVIS registration exceeded the bounds of statutory and regulatory authority and was therefore unlawful. In concluding that defendants’ actions were both arbitrary and capricious, the Court reasoned that defendants failed to suggest any lawful grounds for termination of the SEVIS record and plaintiffs are likely to prevail on their claim that the agency failed to articulate a satisfactory explanation for its action including a rational connection between the facts found and the choice made. The Court also found that absent temporary relief, plaintiffs demonstrated that they face several forms of irreparable harm, including losses in scholarships, career opportunities, research grants, access to education, and the ability to apply for optional practical training (OPT). As to the balance of harms, the Court concluded that plaintiffs stand to lose their lawful status, access to education, and future career prospects, but by contrast, the temporary nature of the interim relief poses minimal harm to defendants; reasoning that there is substantial public interest in ensuring government agencies abide by federal laws even when they pursue their policy prerogatives.
Topics:
Immigration | International StudentsDate:
Association of Governing Boards of Universities and Colleges Community Letter Call to Action (May 1, 2025)
The Association of Governing Boards of Universities and Colleges (AGB) published a community letter reaffirming the independence of higher education governance. The letter states that the independence of governing boards faces renewed and expanding challenges, including efforts to condition public funding on political compliance or ideological conformity, as well as attempts to control fundamental institutional decisions such as determining whom to admit, whom to hire, and how to fulfill an institution’s mission in service to its students and communities. The 200+ college and university presidents, board chairs, sector association leaders, and heads of accrediting agencies who signed the letter agreed that (1) governing boards must retain independent authority to fulfill their fiduciary duties without political interference; (2) higher education’s strength lies in its diversity of thought, freedom of inquiry, and insulation from political orthodoxy; and (3) preserving institutional autonomy is essential for the vitality of American democracy, economic innovation, and global leadership. Finally, the letter calls on leaders in the field to (1) defend the independence of college and university governing boards as a cornerstone of constitutional freedoms; (2) reject political interference that undermines academic excellence and fiduciary stewardship; and (3) reaffirm the principles of charter sanctity and institutional autonomy articulated in Dartmouth College v. Woodward “as vital protections for our nation’s future.”
Topics:
Governance | Governing Boards & Administrators | Government Relations & Community AffairsDate:
Council of Graduate Schools Publishes “Supporting Fair and Inclusive Graduate Programs: A Resource for Faculty and Universities” (Apr. 30, 2025)
The Council of Graduate Schools (CGS) in collaboration with the Equity in Graduate Education (EGE) Resource Center and the Alfred P. Sloan Foundation, published the “Supporting Fair and Inclusive Graduate Programs: A Resource for Faculty and Universities.” The publication includes information on three topics: (1) graduate recruitment and admissions; (2) inclusive program cultures; and (3) mentoring. It was originally developed in response to the 2023 SFFA decision and also addresses state-based legislation and recent federal sub-regulatory actions.
Topics:
Admissions | Students
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